Sunday, August 3, 2014

Dividend Stocks Portfolio (Update) - August 2014

 
Here is the recent update to our dividend stocks portfolio – August 2014.

SALES

As noted in the narrative for our dividend stocks portfolio, we are in the process of re-balancing our portfolio to meet our current stock criteria. Some of our holdings, therefore, do not reflect our current goals, but we are in the process of selling a few of them as they reach our limit price. We are currently in the fourth month of re-balancing our portfolio. 

In July, we continued to sell a few shares this past month but still have a bit more to go.  Our goal is to finish the transition sometime before the end of the year.  Once again, we made some great progress towards this goal during the month July.
 
With that said, we have sold the following 5 positions this past month:

7/18/14
50 shares of CIG (Companhia Energetica De Minas) at $8.50 ($424.99)
  • Estimated Annual Dividend Lost: $78.56
7/21/14
13 shares of CIG (Companhia Energetica De Minas) at $8.72 ($113.96)
  • Estimated Annual Dividend Lost: $20.41
7/21/14
48 shares of CIG (Companhia Energetica de Minas) at $8.65 ($415.19)
  • Estimated Annual Dividend Lost: $73.36
7/21/14
41.614 shares of BBD (Banco Bradesco) at $15.83 ($658.74)
  • Estimated Annual Dividend Lost: $3.95

7/29/14

100 shares of FTR (Frontier Communications) at $7.11 ($711.00)
  • Estimated Annual Dividend Lost: $40.00
TOTAL VALUE OF ALL SALES: $2,323.88*
*We receive 100 free trades per year through our brokerage account so there was no commission paid on these sales.

OVERALL DECREASE TO ANNUAL DIVIDENDS: $216.28

Although we did lose $216.28 in annual dividends, it should be noted that we did profit $664.47 from our 5 sales in July. The profits essentially equates to a 28.6% gain that we were able to lock in. I realize that most dividend investors generally never sell their holdings, but I am doing so to de-risk my portfolio as the dividend from these companies aren't particularly stable.

PURCHASES

July was a busy month as we made a total of 8 purchases during the month.  We initiated shares in 5 new companies that we previously had not owned.  With the recent dip in the market, we hope to continue actively buying more shares throughout the month of August.  We are still sitting on a little bit of money from proceeds from the month of June that we have not put to use.     
 
The following are the actual buys that we made during the month of July:

7/16/14
15 shares of THFF (First Financial Corp) at $31.00 ($465.00)
  • Estimated Annual Dividend Received: $14.70
7/17/14
6 shares of DE (Deere & Company) at $88.00 ($528.00)
  • Estimated Annual Dividend Received: $14.40
7/17/14
15 shares of ARTNA (Artesian Resources Corp) at $21.30 ($319.50)
  • Estimated Annual Dividend Received: $12.72
7/23/14
3 shares of DE (Deere & Company) at $87.50 ($262.50)
  • Estimated Annual Dividend Received: $7.20
7/25/14

6 shares of DE (Deere & Company) at $86.00 ($516.00)

  • Estimated Annual Dividend Received: $14.40
7/28/14
20 shares of GE (General Electric Company) at $25.50 ($510.00)
  • Estimated Annual Dividend Received: $17.60
7/28/14
35 shares of ORI (Old Republic Intl Company) at $15.20 ($532.00)
  • Estimated Annual Dividend Received: $25.55
7/31/14

20 shares of TIS (Orchids Paper Products) at $26.13 (522.70)
  • Estimated Annual Dividend Received: $28.00
TOTAL SPENT ON NEW ACQUISITION: $3,655.70*

*We receive 100 free trades per year through our brokerage account so there was no commission paid on this purchase.

OVERALL INCREASE TO ANNUAL DIVIDENDS: $134.57
Although these purchases will provide us with $134.57 in annual dividends, the anticipated total payout of our portfolio actually decreased by $81.71 this past month because of our recent sales activity. We are confident that we can quickly replace the dividend income that we had lost from  recent sales. The main goal though is to replace them with stable and/or rising dividends stocks that we can depend on long term.
 

DIVIDENDS

July was a great month in terms of dividends received. In fact, we set a NEW monthly high this past month with $469.19 in dividends received. So far this year, we are averaging $181.55 in dividends each month. 

For the month of July, we receive the following dividends:

7/02/14 - Dividend from BPY (Brookfield Property Partners): $15.62
7/02/14 - Dividend from TCK (Teck Resources LTD): $36.51
7/02/14 - Dividend from EDIV (SPDR S&P Emerging Markets ETF): $37.85
7/08/14 - Dividend from CIG (Companhia Energetica De Minas): $146.30
7/09/14 - Dividend from BBD (Banco Bradesco): $.39
7/15/14 - Dividend from ARI (Apollo Commercial Real Estate): $50.52
7/15/14 - Dividend from ARCP (American Realty Capital Properties): $13.33
7/18/14 - Dividend from CIG (Companhia Energetica De Minas): $92.12
7/25/14 - Dividend from BBD (Banco Bradesco): $3.83

7/31/14 - Dividend from AMTG (Apollo residential Mortgage Inc): $76.35

OVERALL DIVIDENDS TOTAL THIS MONTH: $469.19

* We currently receive our dividends as cash in all stock positions held.
  

In case you interested, our family's dividend stocks portfolio may be found by clicking on the link below:

 

14 comments:

  1. Why the gradual selling of CIG? Doesnt that add a lot to your transaction costs?

    Anyways, good to see the progress and glad that your transition is coming along well. Congrats on all the dividends received.

    Best wishes
    R2R

    ReplyDelete
    Replies
    1. R2R - I have 100 free trades a year and still have roughly 40 trades left with less than 2 months to go. Selling little by little was my way of trying to slowly sell my shares and hedge against selling too low. If I had to pay for each every transaction, even just a little bit, I would have taken a different approach. :)

      Thanks for stopping by and for the comment. Your input is always valued. AFFJ

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  2. I sold CIG also and qualified for those dividends. Boy they were big.

    ReplyDelete
    Replies
    1. PMU - It was a good month for CIG holders. We still have shares left but did unload a majority of our holdings this past month. Very happy with the profits and dividends received. :)

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  3. Not your "typical" dividend growth stocks. I'm not sure if you ascribe to a certain investing philosophy or if yours is more of an amalgamation of stocks.

    Either way - keep saving, keep investing, invest early, invest often.

    Also you have ARCP listed as Frontier Communications instead of American Realty Capital Properties.

    ReplyDelete
    Replies
    1. Wallet Engineers - We still consider our portfolio a work in progress. :) As our portfolio grows and as we move closer to retirement, we will definitely look exclusively into dividend growth stocks. Right now, we are happen owning dividend stocks with growth potential.

      BTW, thanks for pointing out my error, it has since been corrected. AFFJ

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  4. Nice dividend income this month, I'm hoping to gain consistent dividend income every month also. I'm still building up my portfolio.

    ReplyDelete
    Replies
    1. J - Keep spending less than you earn, save and invest the rest, your dividends and portfolio will continue to increase as a result. AFFJ

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  5. Solid month of dividend income. You have quite a few payers I'm not familiar with. I'll have to take a look at some of these. What are your main criteria for new purchases?

    ReplyDelete
    Replies
    1. Thanks AAI - For the most part, I try to buy within the following stock criteria: Dividend yield over 2.5%, 5 years of stable or rising dividends, Payout ration under 75%, P/E under 20, Return on equity over 10%, 5yr EPS growth at 5% and above.

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  6. Great combination of dividends received and new purchases. Very solid all around month AFFJ. Keep putting the capital to work.

    MDP

    ReplyDelete
    Replies
    1. Thanks for the words of encouragement MDP. Your support and the support of other dividend bloggers do mean a lot to me.

      Wishing you continued success in your personal journey! AFFJ

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  7. THFF came up on my stock screen as well...does the low volume bother you at all?

    ReplyDelete
    Replies
    1. Evan - I can look past the low volume...I think THFF is a good stock to buy and hold right now. Decent yield at just over 3%, relatively low payout ration at 41%. Although Dividend growth rate could be a bit higher, THFF does still have 19 consecutive years of dividend growth nevertheless. Big or small, consistent dividend increases is still OK in my book. :)

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